Restructuring is the only one way out of this debt mess, and "restructuring means default." Kyle Bass, managing partner of Hayman Capital, told CNBC Wednesday.
"Greece has to default," said Bass. "It's going to be a hard default, and then it's going to be difficult to contain this contagion."
"The world seems to think they're going to have an orderly default," he added. "I've never seen an orderly default."
A year from now Europe will be going through the "dominos of hard restructuring,"explained Bass. "[The euro zone is] going to have to have 17 different TARPs, we're not going to have one Super-TARP," referring to the U.S. Troubled Asset Relief Program during the subprime mortgage crisis.
As a result the world is going to be a more destabilized place, Bass added. "That means we're going to be in recessionagain."
Although, every single European country that does ends up defaulting "will maintain structural stability in their banking system," explained Bass, "that doesn't mean in its current construct today that that equity is worth anything."
"This period we're about to go through, a lot of people are going to lose a lot of money," concluded Bass.
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